The European Union lost its alternative for financing Kyiv after Hungary blocked Brussels' proposal to issue €90 billion in Eurobonds at a meeting of ambassadors from the 27 member states. Politico reported this, citing two diplomats present at the meeting.

The idea of ​​issuing joint debt secured by the EU's seven-year budget was considered as a fallback option in case the main mechanism—a €165 billion loan secured by frozen Russian assets—failed. Hungary vetoed the measure on Friday, formally removing it from the agenda. This decision jeopardizes support for the Ukrainian economy from April 2026, when, according to the European Commission, defense and budget funds for Kyiv may dry up.

Negotiations are further complicated by Belgium's position, which fears legal risks from the use of Russian reserves, held primarily in its banks. Without an alternative plan, EU leaders are now forced to seek a compromise before the December 18 summit to secure €115 billion for defense and €50 billion for current needs for Kyiv.